Pace has ‘stronger focus’ – Leighton
PACE chairman has told shareholders the company has made an encouraging start to the year as he looks to draw a line under a turbulent period for the firm.
The company is looking to bounce back from a year that included a profits warning, supply issues following floods in Thailand and the departure of chief executive Neil Gaydon and chief financial officer Stuart Hall.
Mr Leighton will tell the company’s annual general meeting: “The new management team is tightly focused on delivering an improved performance in 2012 by meeting our customers’ needs, widening out our product offer and delivering a leaner, more profitable business underpinned by strong underlying cash flow.”
The set-top box maker is continuing to be hit by the supply problems with hard drives caused by the Thai floods but Mr Leighton will insist that impact is in line with expectations.
“The business is benefitting from a stronger operational focus and this is delivering tangible benefits in procurement, operating efficiency and costs.
“Cash performance in the period has been strong and the financial position of the company remains robust.”
Mr Leighton will tell shareholders that the Saltaire-based firm is on track to deliver an underlying EBITA margin of around 7%.
